Coinbase has sold 12,652 ether (approximately $25 million at current prices) in the fourth quarter, according to Geoffrey Kendrick, the global head of digital assets research at Standard Chartered Bank.
In his analysis, Kendrick noted that Coinbase’s sales of ETH were linked to profits from its Base blockchain, rather than a strategy of long-term accumulation:
- Sales Breakdown: Coinbase sold 12,652 ETH, reflecting a pattern of sales adjusted for market risks.
- Profit Percentages: Kendrick estimates that 80% of revenues generated by Base are profit.
- Trading Patterns: He pointed out that Coinbase’s trading aligned with price fluctuations in the cryptocurrency market, buying ETH when prices were low and selling when values increased.
A Coinbase spokesperson confirmed that any ETH sales were primarily to cover operational costs and dismissed claims regarding regular trading activities, stating:
“Base earns ETH from sequencer fees, and the ETH we earn is primarily held for long-term investment or used for operational expenses.”
Kendrick’s findings suggest a methodical approach to trading rather than accumulation, asserting:
“The fact that they net bought in Q3 (when prices were low) and net sold in Q4 (when higher prices prevailed) indicates Coinbase operates like a profit-maximizing entity.”
Despite the trading activity, the spokesperson emphasized that Coinbase does not typically engage in trading its holdings actively. These clarifications follow similar concerns raised previously regarding sales of ETH related to Base’s operations.
